MAGAZINE ARCHIVES

New bank licences expected by FY14 end: FinMin

The Finance Ministry on Friday said it hopes that the Reserve Bank will be able to issue licences for new private sector banks by the end of 2013-14 fiscal.

RBI has issued guidelines for corporates, both in private and public sectors as well as NBFCs, to foray into the banking space. The last date for applying for a new bank licence is July 1.

"There would be examination of applications (by RBI and a high powered committee). I think with all going well, with all clearances, by end of the financial year (2013-14) we will see some success," Financial Services Secretary Rajiv Takru said.

He said the RBI guidelines aim to "ensure that only responsible people enter the (banking) space".

When asked if public sector entities hold edge over private corporates, the Secretary said there will be a level playing field and RBI would not show favour to any entity.

"It is a level playing field. Whoever is eligible will get (licence). I don't think the RBI is going to play any favourites, and we have no intention of any favourites being played," he said.

On issues of clearances from Income Tax, CBI and ED and also other regulators, Takru said these conditions are aimed at ensuring safety of the deposits of customers.